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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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I


320.0000 Interest and Penalties—Regulation 1703

Annotation 320.0205


320.0205 Relief from Penalty Billed Under Section 6829. A corporation was assessed a penalty for filing a late return. The same penalty was later assessed to an individual as the responsible party under section 6829, personal liability of corporate officer. The responsible party then submitted a request for relief of penalty pursuant to section 6592, excusable delay, for both the corporation and for himself as the responsible party.

Section 6829 imposes, under certain circumstances, a liability on corporate officers and other responsible persons for the unpaid liabilities of various defunct business entities. This section is not a "penalty" provision subject to the relief provisions of section 6592 and is not listed as one of the statutes with respect to which relief may be obtained under section 6592. Instead section 6829 holds such responsible persons dually liable because of their own conduct in failing to cause the defunct business entity to be in compliance with the reporting and payment requirements of the Sales and Use Tax Law. Therefore, the Board cannot grant relief from a section 6829 liability pursuant to section 6592.

However, because section 6829 establishes a dual liability that is contingent on, and derives from, the liability of the subject defunct business entity, if the Board relieves a penalty imposed on that business entity pursuant to section 6592 and if this penalty amount was included in the responsible person's liability under section 6829, the responsible person's liability should consequently be reduced by the same amount. 3/29/04. (2005–2).